FY2017.3 Financial Results Presentation€¦ · Ikuze, Tohoku. Campaign, and . Shinshu Destination...
Transcript of FY2017.3 Financial Results Presentation€¦ · Ikuze, Tohoku. Campaign, and . Shinshu Destination...
FY2017.3 Financial Results Presentation
May 1, 2017 East Japan Railway Company
Contents FY2017.3 Financial Results (consolidated, old segment) 21
The JR East Group’s 30th Anniversary 4 FY2018.3 Plan (consolidated, new segment) 22
Improve the Safety and Reliability of Transportation 5 Transportation (old segment) Results /Transportation (new segment) Plan
23
Take on the challenge of enhancing profitability 6 Station Space Utilization (old segment) Results /Retail & Services (new segment) Plan
24
Major Projects Going Forward 7 Shopping Centers & Office Buildings (old segment) Results /Real Estate & Hotels (new segment) Plan
25
Advance “TICKET TO TOMORROW” Initiatives 8 Others (old segment) Results /Others (new segment) Plan
26
Strengthening Management Structure 9 Summary of Non-operating Income / Expenses and ExtraordinaryGains / Losses (consolidated) - Results and Plan
27
Revisions to Segment Information 10 Summary of Cash Flows (consolidated) 28
FY2020.3 Numerical Targets (new segment) 11 Change in Capital Expenditures (consolidated) 29
Uses of Consolidated Cash Flows 12 Capital Expenditures in FY2018.3 - FY2020.3 30
Major Projects of the Life-style Business Going Forward 31
FY2017.3 Financial Results and FY2018.3 Plan (non-consolidated) 14 Change in Interest-bearing Debt Balance (consolidated) 32
Passenger Revenues – FY2017.3 Results 15
Passenger Revenues – FY2018.3 Plan 16III. Reference Materials
Topics (Hokkaido Shinkansen and Hokuriku Shinkansen) 17
Topics (Forecast of Inbound Revenues) 18
Operating Expenses (non-consolidated) – FY2017.3 Results 19
Operating Expenses (non-consolidated) – FY2018.3 Plan 20
I. JR East Group Management Vision Ⅴ - Ever Onward - Current Situation and Foresight
II. FY2017.3 Financial Results and FY2018.3 Plan
> FY2018.3 Traffic Volume and Passenger Revenues - Plan> Operation Suspended Lines and Segments
Damaged by Tsunami during Great East Japan Earthquake> Suica> Life-style Business
ecute, Hotel Operations, Major Subsidiaries> Shinagawa Development Project> Additional information for bond investors
I. JR East Group Management Vision Ⅴ - Ever Onward -
Current Situation and Foresight
[Establishment starting points ] (1) Autonomous (2) Customer focused (3) Regionally rooted
Rehabilitation and revitalization of railways
Declining population, technological innovation, globalization, etc.
1987 (Establishment of JR East)
Evolving railways and pursuing new possibilities (Returning to establishment starting points)
The JR East Group’s 30th Anniversary
Updated “Priority Initiatives Going Forward” of JR East Group Management Vision V
Improve the Safety and Reliability of Transportation
Take on the Challenge of Enhancing Profitability
Advance “TICKET TO TOMORROW” Initiatives
Priority Groupwide Tasks
Changing conditions
Res
truc
turin
g of
Ja
pane
se N
atio
nal R
ailw
ays
2017(Now)
4
Improve the Safety and Reliability of Transportation
■Pursuing “Extreme Safety Levels”
Roundtable discussion Accident History Exhibition Hall
Improve the safety and reliability of transportation
Installation of simulators at drivers & conductors depots
Automatic platform gates installation
change points
Dot-Braille blocks indicating platform edge
Seismic reinforcement measures Rail replacement on Tohoku Shinkansen Line
Rapidly advancing transition to next generation of employees Increasingly flat division of work
Implementing platform safety measures Building a resilient railway
Overcoming safety weaknesses
5
Changes in railway systems
Cut model of railcar electric motor
Advancing “Group Safety Plan 2018”
■Initiatives to promote Japan as tourism-oriented nation
6
■Promote use of railway network
SHINKANSEN YEAR 2017 campaign poster 6
Tourist Information Center Akita City (Akita Station)
JR EAST Travel Service Center (Narita Airport Terminal 2·3 Station)
New limited express Series E353 railcars for Chuo Line
Take on the challenge of enhancing profitability
Enhance convenience through use of ICT, etc. ・Advance Internet sales (View online travel products, JR East Dynamic Rail Pack) Expand and improve Tokyo metropolitan area’s railway network ・Begin introducing Series E235 mass-production railcars to Yamanote Line ・Begin using ATACS on Saikyo Line (around autumn 2017)
Expand and improve Shinkansen and other intercity railway networks ・Stimulate tourism based on Hokkaido Shinkansen Line, Hokuriku Shinkansen Line, Ikuze, Tohoku. Campaign, and Shinshu Destination Campaign
Expand and improve services for seniors ・Establish Otona no Kyujitsu Club travel products with exclusive feel
Promote tourism in eastern Japan ・Promote tourism through collaboration with Tohoku Tourism Promotion Organization and all areas of Tohoku ・Begin operating TRAIN SUITE SHIKI-SHIMA
Strengthen marketing capabilities overseas ・Promote sales of railway passes and travel products for visitors to Japan ・ Launch air and land travel packages coordinated with international airlines ・ Implement sales promotions tailored to each market
・Establish JR EAST Travel Service Centers and tourist information centers
Establish infrastructure to support tourists in close coordination with regions
2017.3 2018.3 2019.3 2020.3 2021.3 2022.3
7
Major Projects Going Forward
New station between Tamachi and Shinagawa
7
(FY)
Haneda Airport Access Line design
Retail & Services
Real Estate & Hotels
Overseas projects
Introduction of Green Cars (upper grade) to
Chuo Line Rapid Service
Rai
lway
ope
ratio
ns
Life
-sty
le b
usin
ess
2023.3 and beyond
Sendai Station East Exit Development (Mar. 2016 – Jun. 2017)
Marunouchi underground area of Tokyo Station
(Jul. 2016 – Aug. 2017)
Main building and facilities of Chiba Station
(Nov. 2016 - summer 2018 and beyond)
JR Saitama-Shintoshin Building
(May 2017 – Jun. 2017)
[Legend] Development of area in and around north passage of
Tokyo Station (2020)
Takeshiba Waterfront Development Project
(2020)
Yokohama Station West Exit Station Development
Building (provisional name)
(2020)
Kawasaki Station West Exit Development Project
(provisional name) (2022)
Shibuya Station Development(Joint development) (FY2020.3・FY2028.3)
Shinagawa Development
Station improvement for stations near the venues for the Tokyo 2020 Olympic and Paralympic Games
8
Advance “TICKET TO TOMORROW” Initiatives
8
Actively take on challenges in technological innovation, new business areas, etc. Develop employees and create corporate culture that maximizes human potential
Provide high-quality services in all business fields
■TICKET TO TOMORROW
Contributing to the growing enthusiasm surrounding the event
Helping to ensure that the Games proceed without issues
Advance steadily
TICKET TO TOMORROW
Advance strategies for visitors to Japan
Improve the convenience and establish the brand power of large-
scale stations
JR East 2020 Project
Provide high-quality services in all business fields and upgrade each aspect of work
Pass on legacy for society and JR East Group beyond 2020
All JR East Group employees take on challenges to realize their new potential
Upgrade large-scale stations, revitalize regions, advance diversity, etc.
Establish barrier-free facilities, provide comfortable passenger rail transportation services, etc.
9
Strengthening Management Structure
9
Increasing interest in “work-style reform”
Compensation improvement
Aging society, declining population
Securing personnel difficult
Background
etc.
Enhance productivity ・ Reform of cleaning frequency and work time
・ Advancement of multi-skill development ・ Construction of systems, increasing operational efficiency, etc.
Initiatives
(Cost increase)
(Cost decrease)
Around 2020 Around 2024
Beginning of operations in stages (Tokyo metropolitan area)
Introduction, review
Introduction and beginning of operations in stages
・Data gathering ・Equipment development, etc.
2017
Track facilities
Electrical facilities
Railcars ・Data gathering ・Data analysis ・Data usage
Introduction, review
(Series E235) Beginning of operations in stages (Series E235)
■ Enhance operational efficiency and productivity
Reform of personnel expenses and business consignment expenses* * JR East → Group companies, etc.
Reform of work systems
Toward sustained growth of JR East Group
■ Cost reduction through technological innovation
・ ATACS: Saikyo Line (around autumn 2017)
Reliability enhancement and cost reduction through streamlining of facilities
Optimization of facilities and equipment maintenance ・ Advance Condition Based Maintenance (CBM)
Introduction, review (Intercity railway networks)
Beginning of operations in stages
Review
Utilization of ICT to innovate operations ・ Station remote control systems ・ Use of artificial intelligence at call centers
Revisions to Segment Information
10
■Approach to Segment Revisions
■Comparisons of New and Old Segments
*Information on the IT & Suica business’s operating revenues and operating income is listed in Others for reference.
■Comparison of operating revenues [old segment] FY 2017.3 (Results)
[new segment] FY 2017.3 (Results) *
Station Space Utilization
Transportation
Shopping Centers & Office Buildings
(14%)
(9%)
(68%)
*Total does not equal 100% due to rounding.
From the fiscal year ending March 31, 2018, JR East revised its reportable segment classifications to focus on operational headquarters in order to better enforce its management approach based on segments that carry out managerial decision-making.
Others (9%)
Transportation (69%)
Retail & Services (17%)
Real Estate & Hotels (11%)
Others (2%)
FY2020.3 Numerical Targets (new segment)
■ Main assumptions (For the three years ending FY2020.3)
(¥ billion) 2017.3 Results
2018.3 Plan
2020.3 Target
2020.3/2017.3
Increase / Decrease (%)
Operating revenues 2,880.8 2,930.0 3,021.0 +140.1 104.9
Transportation 1,989.8 2,001.0 2,028.0 +38.1 101.9
Retail & Services 502.4 514.0 542.0 +39.5 107.9
Real Estate & Hotels 326.3 344.0 362.0 +35.6 110.9
Others 62.2 71.0 89.0 +26.7 143.0
Operating income 466.3 472.0 499.0 +32.6 107.0
Transportation 334.2 335.0 350.0 +15.7 104.7
Retail & Services 36.8 37.0 41.0 +4.1 111.3
Real Estate & Hotels 80.3 83.0 89.0 +8.6 110.7
Others 16.5 18.0 20.0 +3.4 120.6
Adjustment -1.6 -1.0 -1.0 +0.6 59.3
Consolidated ROA (at the end of FY2020.3) (rate of operating income on total assets )
Consolidated ROE (at the end of FY2020.3) (rate of net income on equity )
6%
10%
The three-year targets will be reviewed annually, and will be revised to new targets for the next three years starting from the following fiscal year.
・Real GDP growth rate approx. +0.8% per year ・Basic growth rate for passenger revenues per year Commuter passes: approx. +0.2% per year Non-commuter passes: approx. +0.2% per year
Around
Around 11
12
Uses of Consolidated Cash Flows
* In addition, priority budget allocation max. ¥30.0 billion from the deposit balance on Mar. 31, 2017 (capital expenditures of ¥560.0 billion in total) ** Share buybacks of max. 4.5 million shares or ¥40.0 billion (May 1 to Jul. 28, 2017 )
Targets FY2018.3
Consolidated operating cash flow
¥2.1 trillion (Three-year total to FY2020.3)
Capital expenditures ¥1.7 trillion (Three-year total to FY2020.3)
¥530.0 billion
Investment needed for the continuous operation of business (Safety practice and transportation stability)
¥1,000.0 billion (¥600.0 billion)
¥319.0 billion
Growth investment ¥700.0 billion ¥211.0 billion
Shareholder returns [Medium- to long-term target]
33% total return ratio (to net income)
¥140/share dividend Share buybacks
Debt reduction (During the 2020s)
¥3,000.0 billion interest-bearing debt balance
Reduce interest-bearing debt
Around ¥30.0 billion
*
**
II. FY2017.3 Financial Results and FY2018.3 Plan
14
(¥ billion)
2016.3 2017.3 2017.3/2016.3 2018.3 2018.3/2017.3
Results Results [Plan] Increase / Decrease (%) Plan Increase /
Decrease (%)
Operating revenues 2,057.3 2,068.8 [2,060.0] +11.4 100.6 2,079.0 +10.1 100.5
Passenger revenues 1,805.0 1,816.2 +11.2 100.6 1,826.0 +9.7 100.5
Others 252.3 252.5 +0.1 100.1 253.0 +0.4 100.2
Operating expenses 1,647.3 1,680.1 +32.8 102.0 1,686.0 +5.8 100.3
Personnel expenses 473.2 462.1 -11.1 97.7 453.0 -9.1 98.0
Non-personnel expenses Energy Maintenance Other
702.6 60.3
256.3 385.8
741.6 58.5
287.9 395.1
+39.0 -1.8
+31.6 +9.2
105.6 96.9
112.3 102.4
754.0 64.0
286.0 404.0
+12.3 +5.4 -1.9 +8.8
101.7 109.4 99.3
102.2
Usage fees to JRTT, etc. 86.9 88.0 +1.0 101.3 88.0 -0.0 99.9
Taxes 90.5 94.4 +3.8 104.2 97.0 +2.5 102.7
Depreciation 293.8 293.8 +0.0 100.0 294.0 +0.1 100.0
Operating income 409.9 388.6 [373.0] -21.3 94.8 393.0 +4.3 101.1
Ordinary income 359.4 341.6 [323.0] -17.8 95.0 351.0 +9.3 102.7
Profit 209.0 243.3 [229.0] +34.3 116.4 247.0 +3.6 101.5
FY2017.3 Financial Results and FY2018.3 Plan (non-consolidated)
15
Passenger Revenues – FY2017.3 Results (YoY, ¥ billion) Increase /
decrease (%)
Passenger revenues +11.2 100.6
Commuter passes (Seasonal tickets) +3.9 100.8
Non-commuter passes (Ordinary tickets)
+7.3 100.6
Shinkansen Network +5.9 101.1
Kanto Area Network of Conventional Lines
+3.1 100.4
Other Network of Conventional Lines
-1.7 96.6
(YoY, ¥ billion) Positive and Negative Factors Increase / Decrease
Passenger revenues +11.2 Commuter passes revenues (Seasonal Tickets) +3.9
Non-commuter passes revenues (Ordinary Tickets) +7.3
Shinkansen
(+5.9)
Hokkaido Shinkansen +9.5
Inbound tourism +2.5
Otona no Kyujitsu Club +0.5
Holiday, etc. +0.5
Absence of Zenkoji Gokaicho -0.5
Absence of Leap-year -1.0
Absence of Consecutive Holidays over Silver Week -2.5
Decrease in Hokuriku Shinkansen -6.0
Basic Trend +2.5
Kanto Area Network
(+3.1)
Holiday, etc. +2.5
Weekends of February +1.0 Natural disasters (Typhoon) (increased occurrence compared to previous year) -0.5
Absence of Consecutive Holidays over Silver Week -2.0
Absence of Leap-year -2.0
Basic Trend +4.5
Other Network (-1.7)
Opening of Hokkaido Shinkansen Line (decrease in conventional line) -1.0
Basic Trend -0.5
(YoY, ¥ billion) Total Main factors behind change Basic
Trend 1st half 2nd half
Passenger revenues 100.5%
100.4% 100.6% 100.5%
Commuter passes (Seasonal tickets)
100.4% 100.3%
100.3% 100.4%
Non-commuter passes (Ordinary tickets)
100.6% 100.4%
100.7% 100.5%
Shinkansen Network 101.0% ・Inbound tourism: +1.5 ・Natural disasters (increased occurrence compared to previous year): -0.5 ・Hokkaido Shinkansen: -1.0
100.9% 101.2% 100.8%
Kanto Area Network of Conventional Lines
100.4% ・Inbound tourism: +2.0 ・Natural disasters (increased occurrence compared to previous year): -1.0 100.2%
100.4% 100.4%
Other Network of Conventional Lines
99.2% 98.4%
99.4% 99.0%
16
Passenger Revenues – FY2018.3 Plan
+9.7 billion
+1.8 billion
+7.9 billion
+5.5 billion
-0.3 billion
+2.7 billion
45.5 43.0 39.5 39.5
0.0
10.0
20.0
30.0
40.0
50.0
3.5
8.5 7.5
0.0
2.0
4.0
6.0
8.0
10.0
Hokkaido Shinkansen Line Opening 1st Anniversary Campaign (poster)
17
(Initiatives to promote usage) □ Publicize the appeal of Hokuriku area in each season through Seasonal Beauty Itsutsuboshi. Hokuriku Shinkansen Campaign and establish products throughout the year
(Initiatives to promote usage) □ Roll out Hokkaido Shinkansen Line Opening 1st Anniversary Campaign and market commemorative View travel products and Otona no Kyujitsu Club pass
Seasonal Beauty Itsutsuboshi. Hokuriku Shinkansen
Campaign (poster)
Total travel between eastern Japan–Hakodate (including air travel, people/day)
FY2016.3 FY2017.3 *
* FY2017.3 figure is the result for April 2016–February 2017. * The figures have been estimated for certain airlines. View travel products
(pamphlet)
Topics (Hokkaido Shinkansen and Hokuriku Shinkansen)
■ Hokkaido Shinkansen ■ Hokuriku Shinkansen Amount contributed by Hokkaido Shinkansen (target and result) * Shinkansen increase net of conventional line decrease
(¥ billion)
Amount contributed by Hokuriku Shinkansen (target and result) * Shinkansen increase net of conventional line decrease
(¥ billion)
vs. April plan
+5.0
vs. April plan
-3.5
Up approx. 1.3 times
(Include estimated figures)
Forecast (Oct.)
Plan (Apr.)
Results
Plan
FY2017.3 FY2018.3 Increase in FY2016.3
Forecast (Oct.)
Plan (Apr.)
Results
Plan
FY2017.3 FY2018.3
New inbound revenue (FY2017.3 results)
18
Inbound revenue (Railway business) [result and target]
Previous inbound revenue Newly identified revenue
Railway pass revenue Kanto area conventional line revenue
Shinkansen revenue(excluding railway pass usage)
¥6.5 billion
¥3.0 billion ¥20.5 billion
* Excluding processing fees (approx. ¥4.0 billion) included in previous inbound revenue
0
100
200
300
2015年度 2016年度 2016年度 2017年度 2020年度
Survey of travel by visitors to Japan (NTT DATA Corporation and JR East joint
announcement, April 20, 2017)
Estimate based on survey results
[Previous inbound revenue] [New inbound revenue]
+
12.5 15.0
Plan
16.5
35.0
9.5
11.0
up17%
YoY
Railway pass
Kanto area
Conventional line・
Shinkansen
20.5 24.0
Visitors to Japan
2016: 24.04 million people
(Government’s target)
2020: 40 million people
Inbound revenue (Life-style business) [result and target]
2.6
5.7
4.7
4.7
0
50
100
150
200
250
FY2016.3 FY2017.3 FY2021.3
7.3
10.4
(Target) 20.0
* Visitors to Japan accommodation revenue is the aggregate of accommodation revenue from HOTEL METS and the previously identified results for Metropolitan Hotels. * Total tax-free sales are the aggregate of tax-free sales other than tax-free counter sales and the previously identified total sales volume at tax-free counters.
Visitors to Japan accommodation revenue
Total tax-free sales
up43%
YoY
Topics (Forecast of Inbound Revenues) ■Railway business ■Life-style business
¥11.0 billion (up 26% YoY)
(¥ billion)
(¥ billion)
【Target】
30.0
20.0
10.0
0.0
0.0
5.0
10.0
20.0
25.0
15.0
FY2016.3 FY2017.3 FY2017.3 FY2018.3 FY2021.3
【Plan】 【Target】
19
(¥ billion) 2016.3 2017.3 2017.3/2016.3 Main factors behind change
Results Results Increase / Decrease (%)
Operating expenses 1,647.3 1,680.1 +32.8 102.0 Personnel expenses 473.2 462.1 -11.1 97.7 ・Decrease in number of employees etc.
Non-personnel expenses 702.6 741.6 +39.0 105.6
Energy 60.3 58.5 -1.8 96.9 ・Decrease in fuel costs of thermal power plants: -9.4 ・Renewable energy surcharge: +1.1 ・Maintenance of thermal power plants etc.:+5.4
Maintenance 256.3 287.9 +31.6 112.3
・General maintenance expenses: +30.5 (Provision for Large-Scale Renovation of Shinkansen Infrastructure: +24.0, Construction supplementary maintenance: +3.3, Safety countermeasures in response to accidents: +3.2) ・Railcar maintenance expenses: +1.1
Other 385.8 395.1 +9.2 102.4 ・Outsourcing expenses: +3.8 ・Systems usage expenses: +2.1 ・Railcar usage expenses: +1.1
Usage fees to JRTT, etc. 86.9 88.0 +1.0 101.3
・Shinkansen:+3.3 (Hokkaido Shinkansen: +2.1) ・Decrease due to the end of leasing of some railway facilities (Musashino Line), etc.:-2.3
Taxes 90.5 94.4 +3.8 104.2 ・Amendment of pro forma standard taxation:+3.5 ・Property tax, etc.:+0.5
Depreciation 293.8 293.8 +0.0 100.0
Operating Expenses (non-consolidated) – FY2017.3 Results
・Personnel expenses + Business consignment expenses (FY2017.3 Result) : ¥670.8 billion * (-¥5.0 billion YoY) *Personnel expenses: ¥462.1 billion, Business consignment expenses: ¥208.6 billion
20
(¥ billion) 2017.3 2018.3 2018.3/2017.3 Main factors behind change
Results Plan Increase / Decrease (%)
Operating expenses 1,680.1 1,686.0 +5.8 100.3
Personnel expenses 462.1 453.0 -9.1 98.0 ・Decrease in number of employees etc.
Non-personnel expenses 741.6 754.0 +12.3 101.7
Energy 58.5 64.0 +5.4 109.4 ・Increase in fuel costs of thermal power plants
Maintenance 287.9 286.0 -1.9 99.3
Other 395.1 404.0 +8.8 102.2 ・Outsourcing expenses: +7.1 ・Utility expenses(increase in unit price, etc.): +2.3 ・Railcar usage expenses: -1.5
Usage fees to JRTT, etc. 88.0 88.0 -0.0 99.9
Taxes 94.4 97.0 +2.5 102.7 ・Increase in property tax, etc.
Depreciation 293.8 294.0 +0.1 100.0 ・Increase due to capital expenditures ・Decrease due to the amendment of the rules regarding depreciation
Operating Expenses (non-consolidated) – FY2018.3 Plan
・Personnel expenses + Business consignment expenses (FY2018.3 Plan) : ¥669.0 billion* (-¥1.8 billion YoY) *Personnel expenses: ¥453.0 billion, Business consignment expenses: ¥216.0 billion
21
(¥ billion) 2016.3 2017.3 2017.3/2016.3
Results Results [Plan] Increase / decrease (%)
Operating revenues 2,867.1 2,880.8 [2,878.0] +13.6 100.5
Transportation 1,954.5 1,959.8 +5.2 100.3
Station Space Utilization 399.9 399.6 -0.2 99.9
Shopping Centers & Office Buildings 255.9 267.6 +11.6 104.6
Others 256.6 253.6 -2.9 98.8
Operating income 487.8 466.3 [450.0] -21.5 95.6
Transportation 348.5 326.4 -22.1 93.6
Station Space Utilization 35.0 32.9 -2.1 94.0
Shopping Centers & Office Buildings 71.6 75.0 +3.4 104.8
Others 35.0 34.9 -0.0 99.9
Adjustment -2.4 -3.1 -0.6 124.9
Ordinary income 428.9 412.3 [393.0] -16.5 96.1
Profit attributable to owners of parent 245.3 277.9 [266.0] +32.6 113.3
FY2017.3 Financial Results (consolidated, old segment)
(¥ billion) 2017.3 2018.3 2018.3/2017.3
Results Plan Increase / Decrease (%)
Operating revenues 2,880.8 2,930.0 +49.1 101.7
Transportation 1,989.8 2,001.0 +11.1 100.6
Retail & Services 502.4 514.0 +11.5 102.3
Real Estate & Hotels 326.3 344.0 +17.6 105.4
Others 62.2 71.0 +8.7 114.1
Operating income 466.3 472.0 +5.6 101.2
Transportation 334.2 335.0 +0.7 100.2
Retail & Services 36.8 37.0 +0.1 100.4
Real Estate & Hotels 80.3 83.0 +2.6 103.3
Others 16.5 18.0 +1.4 108.6
Adjustment -1.6 -1.0 +0.6 59.3
Ordinary income 412.3 424.0 +11.6 102.8
Profit attributable to owners of parent 277.9 286.0 +8.0 102.9
FY2018.3 Plan (consolidated, new segment)
22
23
(¥ billion)
2016.3 2017.3 2017.3/ 2016.3
Operating revenues 1,954.5 1,959.8 +5.2
100.3%
Operating income 348.5 326.4 -22.1
93.6%
[Transportation (old segment) Results ] (¥ billion) 2017.3
Results 2018.3 Plan
2018.3/ 2017.3
Operating revenues 1,989.8 2,001.0 +11.1
100.6%
Operating income 334.2 335.0 +0.7
100.2%
[Transportation (new segment) Plan]
Transportation (old segment) Results / Transportation (new segment) Plan
Operating revenues: operating revenues from outside customers Operating income: operating revenues from outside customers + operating revenues inside group - purchases from outside suppliers - purchases inside group
[Notes] Shinshu Destination Campaign (logo) TRAIN SUITE SHIKI-SHIMA
Operating revenues - main positive and negative factors (FY2017.3) (¥ billion) JR East J-TREC
+6.0 -1.4
Increase in passenger revenues Decrease in vehicle export to overseas
FY2018.3 Topics ・Hokkaido Shinkansen Line Opening 1st Anniversary Campaign (Feb. to Sep. 2017) ・Ikuze, Tohoku. Campaign (Apr. 2017 to Mar. 2018) ・Seasonal Beauty Itsutsuboshi. Hokuriku Shinkansen Campaign (Apr. 2017 to Mar. 2018) ・Begin operating TRAIN SUITE SHIKI-SHIMA (1 May 2017) ・Shinshu Destination Campaign (Jul. to Sep. 2017)
24
Oct. Nov. Dec. Jan. Feb. Mar. 2nd-half total Full year
Retails & Restaurant Total 98.8 99.8 102.3 100.8 99.5 102.2 100.6 99.5
J-Retail (existing stores) 101.1 101.5 102.8 101.0 100.1 102.1 101.5 100.8
NRE (existing stores)* 101.1 97.9 101.1 99.3 99.4 97.7 99.4 98.5
(¥ billion)
2016.3 2017.3 2017.3/ 2016.3
Operating revenues 399.9 399.6 -0.2
99.9%
Operating income 35.0 32.9 -2.1
94.0%
[Station Space Utilization (old segment) Results ] (¥ billion) 2017.3
Results 2018.3 Plan
2018.3/ 2017.3
Operating revenues 502.4 514.0 +11.5
102.3%
Operating income 36.8 37.0 +0.1
100.4%
[Retail & Services (new segment) Plan]
Station Space Utilization (old segment) Results / Retail & Services (new segment) Plan
Operating revenues: operating revenues from outside customers Operating income: operating revenues from outside customers + operating revenues inside group - purchases from outside suppliers - purchases inside group
[Notes] * For NRE, hotel operations revenues not included
[Reference] Monthly trends (comparison with same month of previous year, %)
FY2018.3 Topics
・Gransta Marunouchi, Gransta New Area (fully open in Aug. 2017)
Operating revenues - main positive and negative factors (FY2017.3) (¥ billion)
JR East Retail Net (J-Retail) Tetsudo Kaikan Tohoku Sougou Service
-1.5 -0.6 +2.5
Stores closed for construction Stores closed for construction Increase in sales
25
Oct. Nov. Dec. Jan. Feb. Mar. 2nd-half total Full year
Shopping Centers Total 104.4 104.4 102.2 101.7 101.3 103.4 102.9 103.0
LUMINE (existing stores) 101.2 102.8 100.1 98.9 94.3 103.3 100.5 99.8
atré (existing stores) 99.1 100.7 97.5 97.0 97.5 99.5 98.5 98.9 Operating revenues: operating revenues from outside customers Operating income: operating revenues from outside customers + operating revenues inside group - purchases from outside suppliers - purchases inside group
[Notes]
(¥ billion)
2016.3 2017.3 2017.3/ 2016.3
Operating revenues 255.9 267.6 +11.6
104.6%
Operating income 71.6 75.0 +3.4
104.8%
[Shopping Centers & Office Buildings (old segment) Results ]
(¥ billion) 2017.3 Results
2018.3 Plan
2018.3/ 2017.3
Operating revenues 326.3 344.0 +17.6
105.4%
Operating income 80.3 83.0 +2.6
103.3%
[Real Estate & Hotels (new segment) Plan]
Shopping Centers & Office Buildings (old segment) Results / Real Estate & Hotels (new segment) Plan
Operating revenues - main positive and negative factors (FY2017.3) (¥ billion) JR East Building LUMINE Sendai Terminal Building
+5.7
+4.1 +1.5
Opening of JR SHINJUKU MIRAINA TOWER (Feb. 2016) Opening of NEWoMan (Phase I, Mar. 2016) Opening of S-PAL Sendai East Building (Mar. 2016)
[Reference] Monthly trends (comparison with same month of previous year, %)
FY2018.3 Topics
・Saitama-Shintoshin Building (May to Jun. 2017 Open) ・Hotel Metropolitan Sendai East (Jun. 2017 Open) ・Perie Chiba (Ekinaka) (Apr. and Jun. 2017 Open) ・Perie Chiba (Shopping Center) (Autumn 2017 begin operation in advance)
26
Operating revenues - main positive and negative factors (FY2017.3) (¥ billion) JR East Information Systems JR East Rail Car Technology & Maintenance JR East Mechatronics View Travel Service East Japan Marketing & Communications
-8.2
-4.8
-1.7 +2.6
+4.1
Decrease in systems contract revenues regarding Hokkaido Shinkansen Decrease in construction work related to Hokkaido Shinkansen Decrease in sales of IC-related equipment Increase in travel packages due to transfer of product development responsibility Increase in advertising materials
FY2017.3 Hotel operating results Operating revenues: ¥51.6 billion (101.3%)
(including revenues inside group) Operating income: ¥4.4billion (106.0%)
Oct. Nov. Dec. Jan. Feb. Mar. 2nd-half total Full year
Hotel 98.8 99.7 103.7 103.1 100.7 103.0 101.4 100.9
FY2017.3 IT & Suica operating results Operating revenues: ¥44.4 billion (operating revenues from outside customers) Operating income: ¥8.5billion
FY2018.3 Topics ・Japan International Consultants for Transportation (General Consultancy of The Mumbai – Ahmedabad High Speed Railway Project)
Operating revenues: operating revenues from outside customers Operating income: operating revenues from outside customers + operating revenues inside group - purchases from outside suppliers - purchases inside group
[Notes]
(¥ billion)
2016.3 2017.3 2017.3/ 2016.3
Operating revenues 256.6 253.6 -2.9
98.8%
Operating income 35.0 34.9 -0.0
99.9%
[Others (old segment) Results ] (¥ billion) 2017.3
Results 2018.3 Plan
2018.3/ 2017.3
Operating revenues 62.2 71.0 +8.7
114.1%
Operating income 16.5 18.0 +1.4
108.6%
[Others (new segment) Plan]
Others (old segment) Results / Others (new segment) Plan
[Reference] Monthly trends (comparison with same month of previous year, %)
27
Summary of Non-operating Income / Expenses and Extraordinary Gains / Losses (consolidated) - Results and Plan
Interest expense : 37.3 (-6.0) Bond interest : 32.8(-0.0)
(¥ billion) 2016.3 2017.3 Increase/ decrease
Cash Flows from Operating Activities (I) 673.1 652.9 -20.2
Cash Flows from Investing Activities (II) -499.5 -557.5 -57.9
Free Cash Flows (I) + (II) 173.5 95.3 -78.1
Cash Flows from Financing Activities (III) -110.2 -116.2 -6.0
Net Change in Cash and Cash Equivalents (I) + (II) + (III) 63.2 -20.9 -84.1
Cash and Cash Equivalents at Beginning of the Year 245.1 307.8 +62.6 Decrease in Cash and Cash Equivalents Resulting from Exclusion of Subsidiaries from Consolidation -0.6 - +0.6
Increase in Cash and Cash Equivalents due to Merger - 0.2 +0.2
Cash and Cash Equivalents at End of the Year 307.8 287.1 -20.6
Summary of Cash Flows (consolidated)
Increase in payments of income taxes -43.0
Change in accounts payable for fixed assets -75.8
28
Change in Capital Expenditures (consolidated) (¥ billion) 2014.3
(Results) 2015.3 (Results)
2016.3 (Results)
2017.3 (Results)
2018.3 (Plan)
Transportation
Growth investment 85.9 65.2 47.0 54.8 79.0 Investment needed for the continuous operation of business
325.9 336.5 345.2 328.3 344.0
Total 411.9 401.8 392.2 383.1 423.0
Non-transportation
Growth investment 107.6 111.9 136.4 115.1 132.0 Investment needed for the continuous operation of business
6.1 8.3 13.3 8.4 5.0
Total 113.7 120.2 149.7 123.5 137.0 Growth investment 193.6 177.1 183.4 169.9 211.0 Investment needed for the continuous operation of business
332.0 344.9 358.5 336.7 349.0
(Depreciation) 348.0 353.2 359.5 364.1 374.0
Total 525.7 522.1 541.9 506.7 560.0
*1
*2 Includes priority budget allocation (¥14.7 billion resulted in FY2014.3) (¥16.6 billion resulted in FY2015.3)
*1 In accordance with a revision of segment information, the plan for the fiscal year ending March 2018 shows investment amounts for transportation and non-transportation based on the new segments. Further, the results show investment amounts for transportation and non-transportation based on the previous segments.
*2
(¥18.1 billion resulted in FY2016.3) (¥23.5 billion resulted in FY2017.3) (¥30.0 billion planned in FY2018.3)
*2 *2 *2 *2
*1
29
■Growth investment [Breakdown] (FY2018.3 – FY2020.3)
■Capital Expenditures
■Approach to investment needed for the continuous operation of business
Transportation
Non-transportation
34%
66%
Capital expenditures
Time of introduction 30
Time of renewal
Investment needed for the continuous
operation of business (simple replacement)
[Results of growth investment] ・Regarding the Company’s criteria for investment decisions on large-scale development projects, the Company makes investment decisions using the DCF method and periods of 20 or 30 years. ・When making investment decisions using a 20-year period, the Company invests in projects that will give a return on investment* of approximately 6% or higher. * Cash flows from operating activities of single fiscal year / capital expenditures
・The overall cash flows from operating activities of growth investment projects has been surpassing the target by approximately 10%.
Capital used for new investments and improvement of functionality when replacing
aging facilities
[FY2018.3 – FY2020.3]
[Example of new investment] ・Automatic platform gates ・Barrier-free facilities
Capital Expenditures in FY2018.3 - FY2020.3
Investment needed for the
continuous operation of
business
Growth investment
¥700.0 billion
¥1,000.0 billion
Priority budget allocation
¥30.0 billion * * Planned in FY2018.3
・Costs reduction efforts are made when renewing facilities, and the capital is used for new investments and improvement of functionality when replacing aging facilities.
31
Major Projects of the Life-style Business Going Forward
Opening Total floor space (m2) Forecast for
operating revenues (Full-year basis)
Office (m2)
Commercial (m2)
Hotel (rooms)
JR Shinjuku Miraina Tower Mar. & Apr. 2016 Approx. 111,000
Approx. 77,200
Approx. 9,400 - Real Estate & Hotels
Approx. ¥12.5 bn
Sendai Station East Exit Development
Mar. 2016 Approx. 43,000 - Approx.
41,000 - Retail & Services Approx. ¥2.5 bn
Real Estate & Hotels Approx. ¥3.0 bn Jun. 2017 Approx.
14,000 - - Approx. 280
Marunouchi underground area of Tokyo Station Jul. 2016 – Aug. 2017 Approx.
19,000 - Approx. 3,700 - Retail & Services
Approx. ¥11.0 bn
Main building and facilities of Chiba Station Nov. 2016 – summer 2018 and beyond (fully open)
Approx. 73,800 - Approx.
57,400 - Real Estate & Hotels Approx. ¥5.5 bn
Shibuya Station Development (Joint development)
(East Tower) FY2020.3 (Central & West Tower) FY2028.3
Approx. 276,000
(Leased floor) Approx. 73,000
(Store space) Approx. 70,000
- (East Tower)
Approx. 181,000
(East Tower) Approx. 73,000
(East Tower) Approx. 30,000
Development of area in and around north passage of Tokyo Station 2020 Approx.
17,600 - Approx. 6,300 -
Yokohama Station West Exit Station Development Building (Provisional name) 2020 Approx.
122,000 Approx. 28,000
Approx. 70,000 -
Takeshiba Waterfront Development Project 2020 Approx. 108,500
Approx. 15,000
Approx. 8,000
Approx. 270
Kawasaki Station West Exit Development Project (Provisional name) 2022 (Plan) Approx.
138,900
(Leased floor) Approx. 65,000
(Store space) Approx.
2,200
Approx. 300
Shinagawa Development Project 2020: Provisional opening of new station Around 2024: Opening of town
Area for development : Approx. 130,000
Change in Interest-bearing Debt Balance (consolidated)
Top : Balance Bottom: Average interest rate
(¥ billion) 2013.3 (Results)
2014.3 (Results)
2015.3 (Results)
2016.3 (Results)
2017.3 (Results)
Bonds 1,659.7 (1.94%)
1,719.7 (1.90%)
1,764.8 (1.84%)
1,809.9 (1.83%)
1,839.9 (1.73%)
Long-term loans 853.7 (1.57%)
899.8 (1.43%)
965.4 (1.30%)
993.7 (1.23%)
1,030.1 (1.14%)
Long-term liabilities incurred for purchase of railway facilities
793.2 (5.63%)
666.4 (5.78%)
545.2 (5.97%)
438.3 (6.18%)
340.9 (6.45%)
Other interest-bearing debt
0.8 (0.76%)
2.3 (1.27%)
- - -
Total 3,307.4 (2.73%)
3,288.4 (2.56%)
3,275.5 (2.37%)
3,241.9 (2.23%)
3,211.0 (2.04%)
32
III. Reference Materials
FY2018.3 Traffic Volume and Passenger Revenues - Plan
Traffic Volume (million passenger kilometers)
Passenger Revenues (¥ billion)
2017.3 Results
2018.3 Plan
Increase / decrease (%) 2017.3
Results 2018.3 Plan
Increase / decrease (%)
Shinkansen Commuter Passes 1,754 1,760 +6 100.3 23.8 23.9 +0.0 100.3
Non-commuter Passes 21,422 21,634 +212 101.0 560.5 566.0 +5.5 101.0
Total 23,176 23,395 +218 100.9 584.3 590.0 +5.6 101.0
Conventional Lines
Kanto Area Network
Commuter Passes 70,202 70,468 +266 100.4 456.0 457.7 +1.7 100.4
Non-commuter Passes 36,113 36,252 +139 100.4 707.0 709.7 +2.7 100.4
Total 106,315 106,721 +405 100.4 1,163.0 1,167.5 +4.4 100.4
Other Network
Commuter Passes 3,074 3,086 +11 100.4 18.4 18.5 +0.0 100.4
Non-commuter Passes 2,530 2,511 -19 99.2 50.2 49.9 -0.3 99.2
Total 5,605 5,597 -7 99.9 68.7 68.4 -0.3 99.6
Total Commuter Passes 73,276 73,555 +278 100.4 474.5 476.3 +1.8 100.4
Non-commuter Passes 38,644 38,764 +120 100.3 757.2 759.6 +2.3 100.3
Total 111,921 112,319 +398 100.4 1,231.8 1,235.9 +4.1 100.3
Total Commuter Passes 75,031 75,315 +284 100.4 498.4 500.2 +1.8 100.4
Non-commuter Passes 60,066 60,399 +332 100.6 1,317.8 1,325.7 +7.9 100.6
Total 135,098 135,715 +616 100.5 1,816.2 1,825.9 +9.7 100.5
Commuter Passes: Seasonal Tickets Non-commuter Passes: Ordinary Tickets
34
Morioka
Yamagata
Shinjo
Koriyama
Kitakami
Ichinoseki
Akita
Sendai
Kesennuma
Miyako
Fukushima DaiichiNuclear Power Station
Kamaishi
Onagawa
Fukushima
(As of Apr. 1, 2017)
Kesennuma Line
Joban Line
55.4km
■ Current status of conventional lines along the Pacific coast damaged by tsunami
Restoration work underway
Restoration work underway (transfer of management of section scheduled)
27.7km
43.7km
99.0km
55.3km
Bus Rapid Transit (BRT) systems operating (agreement reached on full-scale restoration)
Ofunato Line
Yamada Line
Operation Suspended Lines and Segments Damaged by Tsunami during Great East Japan Earthquake
Yamada Line
Ofunato Line
Kesennuma Line Joban Line
*Railway services have been restored on other line segments (approx. 218 km).
Akita
35
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
220,000
240,000
260,000
280,000
300,000
320,000
340,000
360,000
380,000
400,000
420,000
'04/3 9 '05/3 9 '06/3 9 '07/3 9 '08/3 9 '09/3 9 '10/3 9 '11/3 9 '12/3 9 '13/3 9 '14/3 9 '15/3 9 16/3 9 17/3
(1箇月当たり利用件数:万件)(利用可能店舗数)
店舗数(その他加盟店)
店舗数(街ナカSuica加盟店)
店舗数(駅ナカSuica加盟店)
利用件数/月
Suica ■ Suica Electronic Money - Transactions and Compatible Stores
(Compatible Stores)
10.0
20.0
30.0
40.0
60.0
70.0
80.0
90.0
100.0
110.0
120.0
50.0
130.0
140.0
0
Other Suica compatible stores
Suica compatible stores outside stations
Suica compatible stores in stations
Transactions per month
Suica cards issued: 63.98 million of which electronic money compatible: 61.81 million Mobile Suica members: 4.44million Suica Point Club members: 2.47 million Transactions in Mar. 2017: 149.09 million Transaction per day (highest ever) (5 Aug. 2016) : 5.75 million Compatible stores: 388,040 Compatible locations (terminals):705,260
150.0
36
(Transactions per month: million)
* Figures are as of Mar. 31, 2017. * Figures include results of other affiliated stores.
Development of
Omiya Shinagawa Tachikawa Nippori Tokyo Ueno Shinagawa South Akabane
Beginning of
operations Mar. 2005 Oct. 2005
Oct. 2007 (phase I) Oct. 2008 (phase II) Aug. 2016
(floor space increase)
Mar. 2008 Jun. 2009
(floor space increase)
Mar. 2010
Dec. 2010 (phase I) Mar. 2011 (phase II)
Dec. 2010 (phase I)
Feb. 2011 (phase II) Apr. 2011 (phase III) May 2011 (phase IV)
Mar. 2011 (phase I) Jul. 2011 (phase II) Aug. 2011 (phase III) Sep. 2011 (phase IV)
Store space Approx. 2,300 ㎡
Approx. 1,600 ㎡
Approx. 4,500 ㎡
Approx. 300 ㎡
Approx. 800 ㎡
Approx. 4,300 ㎡
Approx. 1,900 ㎡
Approx. 1,645 ㎡
Number of shops 73 48 70 16 27 74 40 52
FY2017.3 Results (YoY, %)
¥ 10.2 billion (106.1%)
¥ 7.1 billion (103.8%)
¥ 4.9 billion (85.9%)
¥ 1.8 billion (102.1%)
¥ 5.5 billion (109.5%)
¥ 9.8 billion (101.4%)
¥ 11.3 billion (102.2%)
¥ 5.4 billion (100.6%)
37
Hotel Operations - Overview
Hotel Metropolitan (Ikebukuro), Edmont (Iidabashi), Takasaki, Nagano, Sendai, Morioka, Morioka New Wing, Akita, Yamagata and Marunouchi Operating revenues* : ¥ 14.3 billion (FY2017.3) Occupancy rate: 82.0%
■ HOTEL METS chain (23 hotels, 2,687 guest rooms) Kumegawa, Musashisakai, Kokubunji, Urawa, Mito, Kawasaki, Tabata, Tsudanuma, Kitakami, Nagaoka, Mizonokuchi (Musashi-Mizonokuchi), Shibuya, Kamakura Ofuna (Ofuna), Hachinohe, Mejiro, Akabane, Fukushima, Koenji, Tachikawa, Komagome, Yokohama Tsurumi (Tsurumi) , Hotel R-Mets Utsunomiya and Niigata Operating revenues* : ¥ 8.3 billion (FY2017.3) Occupancy rate: 85.8%
■ Familio,Folkloro (8 hotels, 344 guest rooms)
■ Hotel Dream Gate Maihama (80 guest rooms) ■ Hotel New Grand (240 guest rooms)
* Simple sum of operating revenues from each hotel.
(As of Mar. 31, 2017)
■ The Tokyo Station Hotel (150 guest rooms)
■ Metropolitan Hotels (10 hotels, 3,032 guest rooms)
38
Major Subsidiaries - Results and Plan
* Non-consolidated operating revenues / operating income
(¥ billion)
2016.3 Results
2017.3 Results
2017.3/ 2016.3
2018.3 Plan
2018.3/ 2017.3
JR East Retail Net (J-Retail)
Operating revenues 196.5 194.0 98.8% 194.4 100.2%
Operating income 2.6 1.4 56.5% 1.5 106.8%
Nippon Restaurant Enterprise (NRE)
Operating revenues 62.2 60.3 96.9% 58.8 97.6%
Operating income 1.6 0.5 31.0% 0.2 57.5%
LUMINE
Operating revenues 69.6 74.8 107.5% 79.8 106.7%
Operating income 12.3 12.5 101.6% 13.0 103.7%
East Japan Marketing & Communications
Operating revenues 109.0 113.3 103.9% 116.4 102.8%
Operating income 3.8 4.0 104.5% 3.3 83.5%
39
2017 2020 2027 2030s~
Opening of Linear Chuo Shinkansen (plan)
Schedule for the Formation of an International Exchange Hub
・We aim to create a town that can continue growing as an international exchange hub through interim use and the subsequent opening of the town.
Establishing future image for town
development and developing
infrastructure in advance
Land readjustment project
District Planning
City planning road
Town able to continue growing
Interim use
Provisional opening of new station
《Street-based urban design》* Rendered image
《new international town》
Present
Continuing growth as international exchange hub
* Urban plan decided on Apr. 13, 2016
Opening of town (partial
opening)
Around 2024
Shinagawa Development Project
*Guideline for Community Development of the Northern Peripheral Area of Shinagawa Station established on Mar. 31, 2017
* Rendered image Shinagawa New Station (provisional name)
Promote new town
Publicize Japan’s appeal
40
Key Financial Indicators(1)
41
558.6 588.5 562.7 622.7 673.1 652.9
5.5
6.2 6.3 7.6
8.8 9.2
6.0
5.6 5.8 5.3
4.8 4.9
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
2012.3 2013.3 2014.3 2015.3 2016.3 2017.3
(times) (¥ billion) Trend in Interest-bearing Debt / Net Cash Provided by Operating
Activities and Interest Coverage Ratio
Net cash provided by operating activities (left scale)Interest coverage ratio (right scale)Interest-bearing debt / net cash provided by operating activities (right scale)
[Notes] 1) Interest coverage ratio = Net cash provided by operating activities / payments of interest 2) Interest-bearing debt / Net cash provided by operating activities = Interest-bearing debt / Net cash provided by operating activities
Additional Information for bond Investors
10.0
Key Financial Indicators(2)
42
3,340.2 3,307.4 3,288.4 3,275.5 3,241.9 3,211.0
1,874.4 2,030.6
2,180.6 2,285.6 2,442.1
2,653.4
1.8 1.6
1.5 1.4 1.3 1.2
0.0
0.5
1.0
1.5
2.0
0.0
1,000.0
2,000.0
3,000.0
4,000.0
2012.3 2013.3 2014.3 2015.3 2016.3 2017.3
(times) (¥ billion) Trend in Debt to Equity Ratio
Interest-bearing debt (left scale) Shareholder's equity (left scale) Debt to equity ratio (right scale)
Note : Debt to Equity Ratio = Interest-bearing debt / Shareholder’s equity
Additional Information for bond Investors
Breakdown of Interest-bearing Debt
43
Breakdown of consolidated interest-bearing debt (As of Mar. 31, 2017) Balance (¥ billion) Breakdown Average interest rate Average maturity
Bonds 1,839.9 57.3% 1.73% 10.17 years
Long-term loans 1,030.1 32.1% 1.14% 7.26 years
Long-term liabilities incurred for purchase of railway facilities
340.9 10.6% 6.45% 22.86 years
Total 3,211.0 100.0% 2.04% 10.59 years
Breakdown of long-term liabilities incurred for purchase of railway facilities (As of Mar. 31, 2017)
Category of liabilities
Principal (¥ billion)
Balance (¥ billion)
Interest Payment Period
Use of proceeds by recipient ** Variable
/fixed Rate
Number 1* 2,101.8 ― ― ― ― 1991.10~2017.3
Fund for repayment of debt borne by JRTT
Number 2* 638.5 ― ― ― ― 1991.10~2017.3
Construction of conventional lines, etc.
Number 3* 366.5 333.8 Fixed 6.55% Principal and interest equal repayment
1991.10~2051.9 Construction of Shinkansen lines
Sub-total 3,106.9 333.8 6.55%
Akita Shinkansen 27.9 5.6 Variable 1.48% Principal and interest equal repayment 1997.3~2022.3
Tokyo Monorail 36.7 1.4 Variable 2.05% Principal and interest equal repayment
(2002.3)~ 2029.11
Total 340.9 6.45%
Additional information for bond investors
* The names of the liabilities are commonly known as Number 1 through 3 in accordance with the definition under law. Redemptions of the Number 1 and Number 2 long-term liabilities have been completed in FY2017.3. * * Japan Railway Construction, Transport and Technology Agency (JRTT)
Long-term Funding and Liquidity
■ Long-term Funding - Constraining the risks of rising interest rates by raising long-term fund at fixed interest rates and smoothing redemption ladder Long-term credit ratings
■ Liquidity - Daily cash revenues from railway operations (Passenger revenues were approx. ¥ 5.0 billion / day in FY2017.3) - CP issuance facility: ¥ 150.0 billion Short-term credit ratings
Rating agency Rating
Moody’s Aa3 (Stable)
Standard & Poor’s (S&P) AA- (Stable)
Rating and Investment Information (R&I) AA+ (Stable)
Rating agency Rating
Moody’s P-1
Rating and Investment Information (R&I) a-1+
- Bank overdraft facility: ¥ 330.0 billion - Earthquake response commitment line: ¥60.0 billion
Additional information for bond investors
44
45
80.0
159.9 165.0 125.0 120.0
90.0
101.5
111.4 114.5
106.1 114.6 132.9
97.3
4.2 4.2
4.2 4.5 4.7
0.0
100.0
200.0
300.0
400.0
2017.3 2018.3 2019.3 2020.3 2021.3 2022.3
(¥ billion) Long-terms liabilities incurred for purchase of railway facilities
Long-term loans
Bonds
278.9 275.6 283.8
235.3 239.1 227.6
(Results)
Outlook of Interest-bearing Debt Maturity Additional information for bond investors
[Notes] 1) Outlook as of Mar. 31, 2017. 2) Bond redemptions are at face value.
Redemption ladder of interest-bearing debt (consolidated)
Redemptions of the Number 1 and Number 2 long-term liabilities have been completed in FY2017.3.
Outlook of Bond Maturity
46
Redemption ladder of bonds(non-consolidated)
[Notes] 1) Outlook as of Mar. 31, 2017. 2) Redemptions are at face value.
40.0
60.0
30.0 20.0
30.0
40.0
100.0
135.0
105.0 90.0
90.0 111.0
65.0 60.0 60.0 40.0 40.0
65.0 45.0 50.0
30.0
80.0 60.0
40.0 35.0
10.0 10.0 30.0
78.2
58.7
52.5 50.3
20.0
20.0 30.0
40.0
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0(¥ billion) Domestic bonds (unsecured, issued in FY2017.3)
Euro-GBP bonds
Domestic bonds (unsecured)
Domestic bonds (general mortage)
Additional information for bond investors
Bonds Issuance in FY2017.3
47
Series Tenor Total amount of issue Coupon Issue
price Reoffer
yield JGB
spread Issue date Maturity date
115 10 ¥ 10.0 billion 0.060% ¥100 0.060% ― 2016.7.28 2026.7.28
116 20 ¥ 10.0 billion 0.210% ¥100 0.210% ― 2016.7.28 2036.7.28
117 30 ¥ 20.0 billion 0.390% ¥100 0.390% ― 2016.7.28 2046.7.27
118 40 ¥ 20.0 billion 0.500% ¥100 0.500% ― 2016.7.28 2056.7.28
119 10 ¥ 10.0 billion 0.200% ¥100 0.200% +15bp 2017.1.27 2027.1.27
120 20 ¥ 10.0 billion 0.675% ¥100 0.675% +8bp 2017.1.27 2037.1.27
121 30 ¥ 10.0 billion 0.953% ¥100 0.953% +23bp 2017.1.27 2047.1.25
122 40 ¥ 20.0 billion 1.119% ¥100 1.119% +31bp 2017.1.27 2057.1.26
Additional Information for bond Investors
* Determination of terms based on coupon rate rather than spread.
*
*
*
*
Bonds totaling ¥110.0 billion issued
These materials and the video of the presentation can be viewed at the JR East’s web site.
JR East Web site, IR (Investor Relations)
http://www.jreast.co.jp/e/investor/index.html
Forward-Looking Statements Statements contained in this report with respect to JR East’s plans, strategies and beliefs that are not historical facts are forward-looking statements about the future performance of JR East, which are based on management’s assumptions and beliefs in light of the information currently available to it. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause JR East’s actual results, performance or achievements to differ materially from the expectations expressed herein. These factors include, without limitation, (i) JR East’s ability to successfully maintain or increase current passenger levels on railway services, (ii) JR East’s ability to improve the profitability of railway and other operations, (iii) JR East’s ability to expand non-transportation operations, and (iv) general changes in economic conditions and laws, regulations and government policies in Japan.